RALEIGH, N.C. (WNCN) — North Carolina’s construction industry continues to stand out on the national stage, ranking as the fifth strongest in the country, according to a new LendingTree analysis.

The study, which looked at wage growth, job growth, and new housing permits, paints an encouraging picture for the Tar Heel State’s builders, tradespeople, and contractors — and signals momentum for the region’s ongoing economic expansion.

Between 2021 and 2024, construction wages in North Carolina rose by 11.4%, which trails the state’s overall wage growth of 22.3% for all occupations. While the pay increases in construction were more modest, the industry still outperformed the state’s overall labor market when it came to job growth: employment in construction grew by 13%, compared to a 10.8% increase for the workforce as a whole.

Meanwhile, North Carolina’s appetite for new housing remained strong. Over the same period, the state issued 19.11 new residential permits per 1,000 housing units, a figure that signals steady residential development even amid national challenges like rising interest rates and high material costs.

Idaho topped LendingTree’s list as the state with the strongest construction industry in the nation. Arizona, Texas, and Utah tied for second place, with North Carolina rounding out the top five. On the other end of the spectrum, Pennsylvania was identified as having the weakest-performing construction sector in the study, based on slower job and wage growth and fewer new building starts.

The study drew on data from the U.S. Bureau of Labor Statistics and the Census Bureau, providing a snapshot of how states compare in the race to keep up with growing housing and infrastructure needs. Colorado was not included in the rankings due to what the study described as data quality issues from the BLS.

For North Carolina, the findings reinforce what builders and real estate experts have been seeing on the ground: a robust pipeline of projects, sustained demand for new homes, and an industry that’s been resilient even as supply chain hiccups and labor shortages challenged the construction workforce nationwide.

The state’s continued growth in the construction sector is also tied to its population boom. According to the latest Census data, North Carolina remains one of the fastest-growing states in the U.S., with new residents fueling demand for housing, schools, roads, and commercial development.

Industry leaders say the strong performance is encouraging but underscores a long-term need to attract and train more skilled workers to keep up with demand — especially as older workers retire and competition for talent heats up.

Organizations like North Carolina Home Builders Association, technical colleges, and workforce development boards are doubling down on training and apprenticeship programs to help fill the talent pipeline and ensure that the next generation of carpenters, electricians, plumbers, and project managers is ready to step in.

In the broader Southeast, North Carolina continues to compete with neighboring states like Georgia and South Carolina for major projects, investments, and a share of the skilled construction workforce.

While wage growth in the state’s construction sector has lagged behind the average for all industries, many employers are offering signing bonuses, upskilling incentives, and new pathways to advancement in hopes of attracting more workers to the trades.

As developers push ahead with residential and commercial projects — from new suburban neighborhoods to revitalized downtowns — experts say the health of the construction sector will remain a critical piece of North Carolina’s economic future.

Originally reported by Matthew Sockol in CBS 17.